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Rediff.comBusinessEntrepreneurshipsceneinIndiatodayislikeintheUSof1970s,saysTata

EntrepreneurshipsceneinIndiatodayislikeintheUSof1970s,saysTata
July16,201509:22IST

RatanTataadmitssellingNanoas'thecheapestcar'wasamistakekeentoinvestinstartupsthatreachthe
commonman.

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ataSonsChairmanEmeritusRatanTata,aveteranindustrialistturnedinvestorwhohasoverthepastthreeyearsput
hismoneyinatleast10companies,mostofthoseecommercefirms,callshimselfafledglingintheecommerceandstart
upareas.
Tata,whohadbeenthechairmanofthe$103.27billionTatagroupforovertwodecades,saysIndiatodayisseeingthe
samekindofentrepreneurshipwaveastheUShadinthe1970sand80s.
InChennaionWednesdaytoparticipateinthe11thconvocationoftheGreatLakesInstituteofManagement,Tataalso
admittedthegreatestmistakeintheNanocarsmarketingwasbrandingitasthecheapestcar.
Itwouldhavebeenbettertocallitthemostaffordableone,hesaid.Onhisnewinningsasaninvestor,Tatasaidhewas
keentoinvestinventuresthatreachthecommonman.
Headdedallheexpectedwerereasonablereturnsandasatisfactionofhavingsupportedacompanythatwouldhelpthe
country.
Speakingonthesidelinesoftheconvocation,TatasaidIndiawasacountrywithadiversepopulationthenormalbrickand
mortarretailstructurecouldnotgettoallareasandcatertotheentirepopulation.Thiswaswhyecommerceanderetailing
cameinandenhancedreach,hesaid.
Ithinkthereisagreatpotential,itisjuststartingtogettapped,saidTata.
He,however,addedthatvaluationsofecommercecompanieswereveryhighandtherewerefearsthesemightsoonreach
theirpeak.Thiswasaconcern,hesaid,becausethesectorhadnotreacheditsfullgrowthpotentialyet.
"Iamafledglingintheecommerceandstartupsupportareas.Iamnotbigenoughinthesesegmentstomakestatements.
Iamlearning,perhapsmorethananyoneelse,"RatanTatasaid.

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Oncompanieshewouldliketoinvestin,hesaidhewouldpreferthosethatreachedthecommonmanenterprisesrelated
tohealth,womanempowerment,accesstointernet,etc.
"Thingshavechangedalot.IaminterestedinsupportinganythingthatseemstohavethepotentialofchangingIndia."
Tata,whoselatestinvestmentwasinAmpere,astartupthatproduceselectrictwowheelersandthreewheelersfrom
Coimbatore.
Thiswashisfirstinvestmentinanautomobilecompany.Hesaidelectricvehicleswereservingtomoveawayfrompolluting
citiesthesewerearelativelyuntouchedareaanddeservedalittlebitofsupport.
Askedwhetherstartupsneedednurturing,Tatasaidhewasnotanangelinvestor."Itisimportanttonurturethemit's
importanttosupportthem.
Notallstartupsaregoingtobesuccessful.Thecreativeonesusuallyfacethegreatestproblemsinfindingsupport,
becausetheyaredoingthingsothershavenotdonebefore.
Suchventuresthepromisingonesneedtobenurtured."Tatatoldreporters:"Theenvironment(todobusiness)isnot
worsethanitwasearlier,butIthinkitcanbeevenmorevibrantthanitistodaythat'sanopportunity,notcriticism."Tata's
advicetoentrepreneurswasthattheyshouldhaveasenseofresponsibility.
Collectingfundsfrominvestorsaftersellingaconceptandthenwalkingawayifitfailedwasaninsensitivewaytolookat
business,heexplained."Thesearethekindsofjudgementyoumakewhenyoumeetthefounderswhattheirlevelof
commitmentiswilltheyjustwalkawayataparticulartimeaftermakinggains,orwilltheybecommittedtostayingand
buildinganenterprise?"
TataalsosaidIndiawaspoisedtogointoaneweraofgrowthwhich,unfortunately,wastaperingoffforawhile.The
capabilitywastherebutneededgovernmentsupport,headded.
Image:RatanTatawiththeTataMotorsteamatthe8thautoshowinnewDelhi.
Photograph:KamalKishore/Reuters
TENarasimhanandGireeshBabu
Source:

Tags:RatanTata,India,GreatLakesInstituteofManagement,TataMotors,US

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